“Swimming pools are basic, food is luxury”… The ultra-expensive apartment breakfast market ‘Spring and Autumn Warring States Period’
“We’ve heard all the complaints from the complex next door, so we need to be prepared and explain how we’re different.”
The Gaffo Hi-Perfect I-Park in Gaffo-dong, Gangnam-gu, Seoul, is scheduled to open in November. In order to win the restaurant business for the complex, a food and group catering company has been diligently visiting neighboring apartment complexes every morning. The purpose is to collect a long list of complaints from residents about the breakfast offerings.
“It’s one of the biggest complexes in the city, so if we can win the business, it will help us build a good reputation and help us do business in the future,” said the caterer. “Once the resident association is organized and the tender is announced, we will present a bid that is more competitive than any other.” Swimming pools and sky lounges.
Pool and sky lounge. Here’s a restaurant for breakfast and lunch…. It’s no wonder that dining is one of the top three requirements for a luxury apartment. Recently, the spouse of a celebrity garnered a lot of envy when she posted a photo of her apartment’s breakfast service on social media. This is due to the increasing number of dual-income families and single-person households, and the decrease in the culture of cooking at home compared to the past.
In line with this, food and group catering companies are also focusing on capturing new markets. Shinsegae Food, Our Home, and Samsung Wellstory are examples. Even if they are not the three largest food and group catering companies, companies that have been providing hotel catering services for a long time or startups are also entering the market.
Gangnam 3, Yongsan, and Seongsu: 9 apartment complexes with breakfast bonuses
According to the retail industry on the 30th, there were a total of 10 high-end new apartment complexes that offer breakfast, lunch, and dinner in their apartment complexes. In the three Gangnam districts of Seocho, Gangnam, and Songpa, five new apartment complexes in Gapo-dong, Gangnam-gu, Seoul, and two new apartment complexes in Seocho-gu offer meals.
In Gapo-dong, the new apartment complexes offering meals are D Architectural Hills, D Architectural Gapo, Gapo Laminated Forest, Gapo Laminated Blessing, and Gapo Gai Presidency. In Seocho-gu, Acre River Park and Ramian Leaders One are serving meals. Yongsan-gu and Seongdong-gu also have one location each. These include Central Park Harrington Square in Yongsan and Trimaze in Seongdong. Prices vary depending on the complex, but you can enjoy a meal for around 7,000 won per meal.
Builders believe that in future apartment buildings, there will be a greater need to include dining facilities in the community. This is because a well-equipped apartment community has become an important part of the definition of a “luxury apartment.
An official at a real estate agency in Gapo-dong, Gangnam-gu, Seoul, said, “There are many members who believe that a well-equipped community makes a difference in the rental price after moving in, and ultimately affects the price of the house.”
Builders believe that the trend of building dining facilities in apartment communities is likely to spread to major local market apartments. A representative from a major construction company said먹튀검증, “In order to win a project, you have to include a proposal that the condominium association or the developer wants,” adding, “If you calculate that it is a complex that cares, it is a recent trend to include a restaurant in the design of the apartment community.”
Clockwise from top left: Gapo Ramian Blestage, Yongsan Central Park Harrington Square, Gapo Ramian Forest, Seongdong Trimaze Breakfast Photo/webpage adaptation
44% share of Shinsegae Food in Chuncheon’s breakfast market
In response to this situation, food and food service companies are also taking steps to target new foods. Shinsegae Food is the most active. Of the nine apartments with dining facilities in the community, Shinsegae Food is in charge of one restaurant service each in Gangnam-gu, Seocho-gu, Seongdong-gu, and Yongsan-gu, Seoul. That’s about 44% of the total market.
However, given that the apartment breakfast market is still in its infancy, it is still considered to be in the Spring and Autumn period. Not only are companies such as Our Home and Samsung Wellstory entering the market, but also food service companies and hotel caterers. I was in charge of five of the nine major apartments that offer meals.
Our Home plans to start serving breakfast at Gaffo Jai Presidency in July. Samsung Wellstory is providing meals at Gaffor Rahmian Blesty.
Foodist, which was the outsourced food service and food distribution business (FC) division of Hanwha Hotels & Resorts and became VIG Partners in 2020, is also in charge of providing meals at D.H.I. Gaeppo. Foodist is also in charge of food and beverage services for ‘Gimhae Center Dusan Weave the Zenith’ and ‘Gwanggyo The Shop Lake Park’.
Companies that have been providing hotel catering services for a long time are also participating in the market. Maryburst, for example, is in charge of Acro River Park’s food service.
More recently, the startup Front9 has been active in this market. It offers same-day production and same-day delivery of breakfast, lunch, and dinner for apartments that cannot afford to have more than a certain amount of dining and cooking facilities in the community. Examples include Banpo Riches in Seocho-gu, Seoul, and Gwacheon Purgiosummit in Gwacheon, Gyeonggi-do. Front9 plans to list on the KOSDAQ market in 2025.
“It’s a new market,” but some see it as a “flash in the pan
Some believe that this trend will be a “flash in the pan”. Even if the construction company completes the construction in the same way as a restaurant, it will only be a flash in the pan because it is not easy to run a restaurant.
“It’s too early to tell, but there is an opinion that the market is not very scalable,” said a catering company representative, adding, “It’s hard to make a profit if apartment communities are only used for a short period of time at the beginning of the move-in period and are often neglected.”
Another problem is that residents complain about the basic compulsory meals (dokki). This is the practice of charging a management fee for two meals per apartment unit, which is considered a mandatory meal. This is the minimum required to ensure the profitability of the catering company. In addition, the number of complaints about the taste and quality of food is higher than that of companies and public institutions.
“If the usage rate drops, the catering company may have problems with profit, and the quantity or quality of meals may decrease,” said an official from an apartment tenant representative council. “In fact, a residential complex in Gyeonggi-do had to change the use of its breakfast service to a shopping center because the usage rate dropped.